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After the disastrous invasion of Seattle in the Fall of 1989, the Soviet Union expanded its forces into the surrounding countryside of Washington. In their efforts to expand their territories, they moved quickly to seize several key towns and positions to strengthen their control in the state, setting up local command and communications outposts in local civilian centers. Among the many towns seized during the invasion was Clearwater Creek near the Rocky Mountains. Like many other towns surrounding the Seattle metropolitan area, Clearwater Creek became a key outpost of the Soviet defensive perimeter surrounding the city, with its population forced to submit to Soviet control.

After their pyrrhic victory in the nuclear destruction of Cascade Falls, the U.S. learned that the People's Republic of China had aligned itself with the Soviet Union and declared war on the United States. Its first act in supporting the Russians was to send a massive armada of warships to reinforce the Soviet beachhead in Seattle, which would grant the Soviets uncontested control of the occupied zone. Unable to dedicate the rest of the U.S. Army in Western Europe to fight the Chinese, the President ordered all surviving battalions in Washington to liberate the city at all costs, or it would be destroyed in a defensive nuclear strike. Realizing what was at stake, all U.S. Army units in Washington rallied to save Seattle from the fate suffered by Cascade Falls.

The Americans, led by hardened Colonel Jeremiah Sawyer, determined that the weakest garrison stationed on the Soviet defensive perimeter was that stationed at Clearwater Creek, and that disabling its combat capabilities would allow them a path directly towards Seattle. The Americans rallied their forces and immediately launched the attack.

Colonel Sawyer rendezvoused with his battalion on the outskirts of Clearwater Creek, and informed his officers of the impending nuclear strike on Seattle. Desperate to avoid nuclear disaster, Sawyer ordered Captain James Webb to launch a frontal assault into the town while Lieutenant Parker flanked alongside the riverbed to secure the surrounding countryside. Webb sent the 2nd Platoon across the main bridge towards the town, only to engage Soviet patrols and find themselves cut off when the bridge was destroyed in an artillery strike. 2nd Platoon was quickly destroyed, forcing Webb to flank around to the North in a second attempt to attack. Meanwhile, Parker flanked to the East and seized the Soviet command outpost at the local church. Unfortunately, Parker was forced to abandon this position when Soviet bombers destroyed the church. Parker continued northward in an attempt to attack the town head-on, and was quickly met by staunch Soviet defenders.

During the attack, the commanding officer of all Soviet forces in Clearwater Creek attempted to flee in a civilian sedan, forcing the Americans to pursue. Despite his attempts to escape, the Soviet officer was intercepted and killed by Parker's forces, weakening the Soviets' hold on the town. Parker moved on and attacked the town while Webb held off Soviet attacks in the West near the local dam. Parker managed to captured the town's eastern district and immediately set up defensive positions. Once again, he was forced to flee when the Soviets bombed the town. Parker retreated to the outskirts and was cut off from the western district when the bridge connecting the two districts was destroyed in the attack. Parker's forces barely held their ground as a massive Soviet tank force was airlifted in to attempt to recapture the besieged town.

After the unsuccessful Soviet counterattack, Parker detoured across the river towards the local saw mill, where the Soviets had set up a fire base. Parker, with the help of air support, quickly overran the defenders and destroyed the artillery unit stationed there, taking pressure off of Webb's battered units. After a failed attempt by the Soviets to recapture the saw mill, Parker linked up with Webb, who finally broke through the Soviet lines. The two officers then launched an all-out assault on the town's western district.

Parker and Webb smashed through the Soviet lines and commenced with a brutal attack on the town. Colonel Sawyer then reported that Colonel Wilkins of the Oregon National Guard would be unable to reinforce them due to having been delayed by Soviet forces within the region. Despite this, the Americans pressed on and eventually captured the town square, all the while being hit with artillery strikes, helicopter attacks, and airlifted tanks. In spite of the odds, the Americans threw the Soviet defenses into disarray and eventually pushed them clear out of Clearwater Creek, liberating the town.

After securing the area and rallying their surviving forces, Sawyer's forces continued onward towards Seattle, not wasting any time in trying to prevent the nuclear strike.

The Battle of Clearwater Creek was a vital victory for the demoralized U.S. forces in Washington, as it enabled the U.S. Army to breach the Soviet defense perimeter surrounding Seattle and gave them precious time to reach the city before it was too late. Soon, the Americans were encroaching the occupied territories and the Soviets were falling back on all fronts, further isolating their position in the city.